The following section lists the primary regulations pertaining to the FHA’s Home Equity Conversion Mortgage Program, used by compliance, underwriting and servicing staff.
Beginning January 1, 2018, the national lending limit for Home Equity Conversion Mortgages will increase to $679,650 from $636,150. Details were announced today in Mortgagee Letter 2017-17. This new loan limit is also applicable to Freddie Mac’s special exception areas: Alaska, Hawaii, Guam, and the Virgin Islands.
Effective for case numbers assigned on or after January 6, 2018, properties encumbered by a PACE obligation can be paid off using HECM proceeds. “Clarification is provided to identify PACE obligations as Mandatory Obligations that must be paid off at closing, and may be paid off using HECM proceeds,” according to Mortgagee Letter 2017-18. In … more PACE Liens Now Considered a Mandatory Obligation
The Federal Housing Administration announced in FHA INFO #17-49 that its Electronic Appraisal Delivery Integration and Production environments are scheduled for planned system maintenance and will be unavailable from 12:00 PM (Eastern) on Saturday, November 11, 2017, through 9:00 PM (Eastern) on Sunday, November 12, 2017. Normal operations are expected to resume once system maintenance … more Maintenance Planned For Electronic Appraisal Delivery
Financial Assessment is still working. FHA’s new policy of requiring a financial assessment (“FA”) of the borrower’s ability to pay has cut tax and insurance default by nearly three quarters and serious defaults by almost two-thirds. These results continue to validate the encouraging data we shared in previous quarters. FHA’s objective for the new Financial … more Financial Assessment Is Working (Part IV)
The Senate Banking Committee today held a nomination hearing for Brian Montgomery, President Trump’s nominee to be the next Assistant Secretary for Housing/Federal Housing Commissioner. Montgomery served as FHA Commissioner from 2005 to 2009, during President George W. Bush’s second term and the first six months of the Obama Administration. “Now when I’m asked why … more Senate Banking Committee Holds Hearing for FHA Commissioner Nominee
To: All NRMLA Members As we reported in last evening’s Weekly Report, NRMLA has been communicating with the Department of Housing and Urban Development on HECM for Purchase issues and asking for relief for those borrowers who may have made earnest money deposits ahead of the pending PLF changes. In response, the Federal Housing Administration this … more Member Alert: FHA Updates Frequently Asked Questions Regarding H4P Transactions
The Department of Housing and Urban Development released new enhancements to the Home Equity Reverse Mortgage Information Technology (HERMIT) platform that servicers use to collect mortgage insurance premiums, file insurance claims and assign loans to FHA. Of particular note, HERMIT System Changes – Release 5.4 provides access to Death Master Files (DMF) from the Social Security Administration … more HUD Releases Updated HERMIT Software
According to FHA Info #17-40, on September 18, 2017, the Federal Housing Administration (FHA) will update its FHA systems to accommodate: The implementation of origination and servicing policies contained in the Home Equity Conversion Mortgage (HECM) program final rule that published on January 19, 2017; The servicing implementation guidance issued in Mortgagee Letter 2017-11 on … more HUD Issues FHA Info #17-40 with HECM Updates and Reminders in Advance of Final Rule
Citing its fiduciary responsibility to taxpayers and ensuring that its mortgage insurance programs remain viable and effective in the long term, the Department of Housing and Urban Development today announced changes to principal limit factors and mortgage insurance premiums with the publication of Mortgagee Letter 2017-12. Effective for case numbers assigned on or after October … more Member Alert: FHA Adjusts PLFs and Mortgage Insurance Premiums